MAJI's Planned
LMMY Share
Distribution
Could Be a Major
Shareholder Catalyst

NexTel Medical Corp. has communicated its intention to distribute shares of LMMY — a separate OTC-traded company — directly to eligible MAJI shareholders. Management is currently finalising the distribution formula while simultaneously determining the optimal number of MAJI shares to retire under the Regulation A offering.

The share retirement is a deliberate and integral part of the process. In simplified terms, the number of eligible MAJI shares participating in the distribution will help determine the amount of LMMY shares distributed on a per-share basis. Management is therefore evaluating the structure carefully, with the stated objective of maximising the potential distribution to eligible shareholders.

Critically, the contemplated distribution involves LMMY shares already held by MAJI — not a new issuance, not a cash payment, and not a dilutive event. The objective is to take an existing corporate asset and, through the proposed corporate action, distribute that value directly to eligible MAJI shareholders.

Across the major exchanges — NYSE and Nasdaq — dividend-paying companies are common. Roughly 65–70% of large-cap companies return capital to shareholders in some form, whether through cash dividends, share buybacks, or special distributions. On the OTC markets, that number collapses to a fraction of a percent.

The structural reasons are straightforward: most OTC companies are early-stage, cash-constrained, and focused on survival and growth rather than capital return. The typical OTC company is issuing shares — not distributing them. Dilution is the norm; capital return is the exception.

An in-kind share distribution — where a company distributes shares of another company it holds — is even rarer than a cash dividend at the OTC level. It requires the distributing company to hold a meaningful position in another publicly traded entity, have the operational infrastructure to execute the distribution, and have management willing to prioritise shareholder value over internal capital retention.

Under the proposed plan, MAJI shareholders would receive LMMY shares in proportion to their MAJI holdings at a record date to be announced. The distribution formula is being carefully structured: management is first finalising the share retirement count, which establishes the eligible MAJI share base, and then determining the per-share LMMY allocation from there.

This sequenced approach — retirement first, then distribution ratio — is designed to maximise the per-share LMMY allocation to eligible shareholders. Simply holding MAJI shares at the time of the record date would entitle an investor to receive LMMY shares, with no purchase required and no action needed.

Share retirement — also called share cancellation or buyback — is the process of permanently reducing the total number of shares outstanding. For OTC investors who have watched share counts balloon through repeated dilutive financings, a company that actively retires shares is a structural anomaly.

When a company reduces its share count, each remaining share represents a larger percentage ownership of the company. If revenue and earnings remain constant or grow, earnings per share increases — which is one of the most direct drivers of share price appreciation over time. The retirement also directly affects the distribution: fewer eligible shares means a higher per-share LMMY allocation for remaining holders.

The distribution has been communicated but not yet formally executed. Management has stated it will not announce a distribution ratio prematurely — the sequenced approach (retirement first, then ratio) means the key near-term trigger is the share retirement announcement, which will establish the eligible base and unlock the distribution formula.

MAJI currently trades at levels that, in the context of its operational progress and the pending distribution catalyst, appear to reflect significant market underappreciation. The company has established recurring revenue through its healthcare distribution network, launched commercial products, and is now signalling shareholder-friendly capital actions — yet the share price has not reflected this combination of developments.

For investors who follow the OTC space closely, this type of setup — a company with real operational activity, a pending structural catalyst, and a depressed share price — represents the core of what a bottom play thesis looks like. The risk is execution: the distribution must be formally completed, and share retirement must be actively pursued. But the asymmetry of the setup, if those events occur, is meaningful.

NexTel Medical Corp. is doing something that almost no OTC company does: signalling a return of value to shareholders through an in-kind distribution of an existing corporate asset, while simultaneously working to reduce the share count in a way that directly maximises the per-share allocation. In a market segment defined by dilution and capital destruction, this is a structurally differentiated story.

The distribution has not yet been formally executed, and execution risk is real. But the combination of a planned LMMY share distribution, a stated share retirement programme, a sequenced and disciplined management approach, and a deeply oversold share price creates a catalyst setup that warrants serious attention from OTC investors.